SMEL Stock Price: ICICI Securities has ‘buy’ call on Shyam Metalics and Energy with a target price of Rs 400. The current market price of Shyam Metalics and Energy is Rs 346.40 on the NSE. The time period given by the analyst is one year when Shyam Metalics and Energy Ltd. price can reach a defined target. The stock has risen 9.67 per cent in five days on the NSE and has risen 7.10 per cent in the previous month. On a year-to-date (YTD) basis the stock is up by 2.14 per cent but is down by -7.91 per cent in past 1 year.
The newly listed company is a major integrated metal manufacturing firm established in India, with a specialisation in long steel products and ferro alloys, mostly in West Bengal and Odisha. “Key drivers for Shyam Metalics are mini mill configuration allows for close cost monitoring, capex optimization as some of the expensive EPC contracts can be avoided, conservative capital structure holds the company in good stead through cycles and tightly controlled cost structure and low capex intensity allow for increased return ratios through cycle,” the brokerage note stated. Though, high raw material (RM) costs is a key interim risk to margins.
Investment Rationale
The company’s focus on continuous efficiency improvements, improved productivity and cost rationalisation has enabled it to deliver consistent and strong financial and operational performance. The company has a relatively better financial strength as compared to other companies operating in the long and intermediary steel sector, it highlighted.
Read all the Latest Business News and Breaking News here
Comments
0 comment